Henry Thomas
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Entrepreneurship
The 5 key performance indicators (KPIs) for managing your Quebec SME
The 5 key performance indicators (KPIs) for managing your Quebec SME
Once your compensation strategy has been established, it is crucial to ensure that the company generates the profits needed to support it. This is where performance indicators come into play.
Once your compensation strategy has been established, it is crucial to ensure that the company generates the profits needed to support it. This is where performance indicators come into play.
Once your compensation strategy is established, it is crucial to ensure that the company generates the profits needed to support it. This is where performance indicators come in.
So you no longer have to navigate blindly, here are the figures you should have on your dashboard every week.
1. Gross Margin by project or service
In Quebec, with rising labor costs, it is vital to know whether each contract is profitable once direct costs are paid.
2. The Collection Period (DSO)
How long do your clients take to pay their invoices? In a context of high interest rates, every day of delay is a financing cost for your business.
3. Break-even Point
On what day of the month do you finally start making profits? Knowing this number radically changes the way you spend.
4. The Liquidity Ratio
Do you have enough short-term cash to pay your suppliers and your tax remittances (GST/QST)? A profit on paper does not pay the bills at the end of the month.
5. Customer Acquisition Cost (CAC)
How much do you spend on marketing to acquire a new customer? If this cost exceeds the margin generated by that customer, your growth is making you poorer.
Once your compensation strategy is established, it is crucial to ensure that the company generates the profits needed to support it. This is where performance indicators come in.
So you no longer have to navigate blindly, here are the figures you should have on your dashboard every week.
1. Gross Margin by project or service
In Quebec, with rising labor costs, it is vital to know whether each contract is profitable once direct costs are paid.
2. The Collection Period (DSO)
How long do your clients take to pay their invoices? In a context of high interest rates, every day of delay is a financing cost for your business.
3. Break-even Point
On what day of the month do you finally start making profits? Knowing this number radically changes the way you spend.
4. The Liquidity Ratio
Do you have enough short-term cash to pay your suppliers and your tax remittances (GST/QST)? A profit on paper does not pay the bills at the end of the month.
5. Customer Acquisition Cost (CAC)
How much do you spend on marketing to acquire a new customer? If this cost exceeds the margin generated by that customer, your growth is making you poorer.
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